There are some African countries that are in debt profile and I've been borrowing money to settle their countries issues ,it could be for economical growth or insecurity issue, but what always disturb me is that why can't they just print out money and settle their problem then to go and borrowed from other Western countries ? Or why can't they just print money and settle their debt profile ? Please I really need an honest answer to this.
Why don't most country print out money to pay off their debt
- Thread starter Sotherefore
- Start date
- Status
Some countries don't print out money to pay off their debts simply because some don't have the resources and even if they do they don't have the capacity to print the money needed and some haven't even met their budgets for the year talk less of paying off debts that's why some countries end up borrowing from other countries.
The simplest answer is inflation. If there's more money in circulation, the prices of things have been known to rise unbearably in the past.
This makes the poor even poorer, and the economy of the country becomes worsens.
This makes the poor even poorer, and the economy of the country becomes worsens.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
why government can't print cash to take care of his obligation. Since the more cash you print the higher inflation will be. Additionally, in the event that you print more cash, your cash will be less significant. On the off chance that you print very an excessive amount of cash, it will make out of control inflation.
Oluwademilade
New member
Value should be returned for every currency in circulation. Printing more money without a corresponding value, either in goods produced or services rendered means we wouldn't need to work to get this cash. Since we all work for the money, there won't be need to work again since we all have money.
Then we have more money chasing fewer goods (Inflation) and the economy will collapse, leaving the country in a worse state.
Then we have more money chasing fewer goods (Inflation) and the economy will collapse, leaving the country in a worse state.
While this might seem like a good plan on paper, it actually isn't. If money were to be created to fix any imbalance, then it would lead to having excess money in supply which leads to inflation. And then government would keep prinitng to cover for the inflation and the endless cycle continues.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
I've always wondered why such could not have happened as well but I think it's due largely to the fact that there are certain restrictions as to how money should be printed out.
The problem with creating new money to solve economic problems is one of inflation. When you create new money to the ones already in circulation, it serves to add more money than what the government can regulate. With freer money in the market, price tends to shift upwards and thus inflation.
Dear to print money is not so difficult but to keep away reserve behind that currency is too much difficult. Printing notes or currency in large quan
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
According to one of the characteristics o money. Money has to be relatively scarce. The scarcity of money is what makes money what it is instead it will lose its value. Printing more money might lead to an increase in price of goods in the marker which might eventually cause inflation that will affect the economy of the country.
Of course, every country will have rules or monetary policies to print and issue new money, which is managed by the central bank, if a country easily prints money, the money in circulation will exceed what is needed so that there will be a defaluation, which will affect the value of international trade.
Governments round the arena have spent billions this year on their reaction to the COVID-19 crisis billions that, earlier than the pandemic, many politicians stated nations didn’t have or couldn’t afford.Historically, whilst nations have honestly published cash it results in intervals of growing prices — there’s too many assets chasing too few items. Often, this indicates each day items grow to be unaffordable for everyday residents because the wages they earn quick grow to be worthless.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Some won't do that cause they don't have enough resources to do that. I think I heard one time that the order is from world bank but I know some of these rich man will be printing money .since they can afford it of they will be turning old mint to something they can use. Country printing money to pay debt is good
Printing more money when it is not necessary will only lead to less money. The power of the countries currency will keep going down and then it is same thing. If value goes down the more you print then you are stuck with same amount.
Paying out debt with printed money is bad for the economy.. It will lead to inflatation and also devalue the country currency. Printing to pay debt will only kill the economy more than the debt itself and can lead the country to economy recession
Moreover, Most countries do not pay their debt once, they pay them in bit through debt servicing which can go for years.. Some might even take 30 or 50 years before completion of that payment so there will be no need to pay it all off at once
Post automatically merged:
Moreover, Most countries do not pay their debt once, they pay them in bit through debt servicing which can go for years.. Some might even take 30 or 50 years before completion of that payment so there will be no need to pay it all off at once
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
INFLATION, Inflation is the real reason they won't do that, if they print out money to pay off there debts there will be too much of money in circulation, and if that happens the money won't have value.
Unless there is an increase in economic activity commensurate with the amount of money that is created, printing money to pay off the debt would make inflation worse. This would be, as the saying goes, "too much money chasing too few goods."
Sohnny Jins
Familiar Face
Hahaha, this is funny but it makes sense. But seriously, its not that easy, its against the law i think.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Why can't the government just print more money to get out of debt? ... Unless there is an increase in economic activity commensurate with the amount of money that is created, printing money to pay off the debt would make inflation worse. This would be, as the saying goes, "too much money chasing too few goods.
Except if there is an expansion in monetary action comparable with the measure of cash that is made, printing cash to take care of the obligation would aggravate swelling. This would be, as the colloquialism goes, "an excessive amount of cash pursuing too couple of products.
So Governments can't simply print cash in ordinary occasions to pay for their arrangements? The short answer is swelling. Truly, when nations have essentially printed cash it prompts times of rising costs — there's an excessive number of assets pursuing too couple of products which is INFLATION.
So Governments can't simply print cash in ordinary occasions to pay for their arrangements? The short answer is swelling. Truly, when nations have essentially printed cash it prompts times of rising costs — there's an excessive number of assets pursuing too couple of products which is INFLATION.
- Status
Newest Directory Listings
WWE Hub is a discussion forum for all things wrestling! Share and chat with other wrestling fans throughout the world!
ABCProxy is cost-effective, ethical residential proxies network!
